Predictions for the Housing Market in 2021

 With the economic slowdown reducing business activity in all sectors, the housing market has suffered a significant blow in 2020. But as significant as the damage may be, this industry is the only hope for the economy to heal from the pandemic.



Analysts and realtors have their eyes set on the coming year. Here are some predictions for the housing market in 2021.

Spring revival for Real Estate

When nature begins resuming its natural course around springtime, the real estate market follows suit. It's typically the best time to put your property up for sale and attract suitable offers. However, owing to the pandemic, trading activity in the housing market has dwindled. The economy is still in a semi-state of limbo, and mortgage applications have fallen by 17.9%.

A significant factor to consider is unemployment during the early phases of COVID-19. In just three weeks of coronavirus hitting the country, 26 million people had lost their jobs. The CARES Act couldn’t provide long-term relief to the laid-off workers, impacting the demand for homes. To revive buying and selling in the market, buyers will rely on virtual showings of property options as sellers are wary of letting people walk in.

The Economy With Revive With Rate Cuts

The year may have been unexpectedly terrible in many ways, but the housing market was off to a good start. With low mortgage rates and a seller's market inviting reasonable offers on listed property, buying activity was high.

However, with the pandemic hitting so many parts of the country, experts predicted a recession would hit the economy. Yet, the International Monetary Fund (IMF) has confirmed that the condition in 2021 may trigger a global slowdown. To avert this risk, the Federal Reserve has reduced the mortgage rates by 0.5% to revive buying activity. Hopefully, this will restore activity in the real estate industry even though the fixed-rate mortgage for 30 years will remain lower than 3%. Analysts have observed that the housing market may even be the driving force behind a macroeconomic recovery.


 

Personal Finances for Buyers

Mortgage lenders consider the employment history of debtors before extending a home loan. But considering the employment situation in 2020, many of the applicants might not meet this criterion. It’s only the essential or frontline workers that may retain their jobs; all other workers are likely to be furloughed or laid off.

But since this is a nation-wide phenomenon, borrowers can leverage this to continue with their applications. Expert realtors have suggested that banks might allow concessions to borrowers in this regard and approve loans if they’re able to find another job.

As for now, clients want a broker they can trust and one who can get them out of a fix.

Phillip Fehler is a real estate broker at Fathom Realty. His experience in the real estate industry has granted him expert knowledge of the property market. He has offered his real estate brokerage services to many residential clients in Fayetteville and Fort Bragg in North Carolina.

Call at (910) 381-1341 or email us at phillipsellsnc@gmail.com. They're looking forward to helping you invest and make it big in the investor market!

 

 

 

 

 

Comments

Post a Comment

Popular posts from this blog

Picking the Right Neighborhood—4 Factors to Consider

Image
  Choosing the right house in Fayetteville, NC , isn't easy. You have to go through dozens of listings to ensure that the house you choose has everything you need. But are a house's features, structure, condition, and pricing the only factors you should consider? What about the neighborhood? You might have seen many people considering the area of a house and asking questions about it. But how can you ensure you're buying a house in the right neighborhood? Here are some factors to help you pick the right neighborhood. Crime Statistics The biggest factor you should consider in a neighborhood is the crime rate . The internet is a good platform for searching the crime statistics of different neighborhoods. In addition, you can always ask a local real estate agent about a neighborhood's crime rates. You can also call the local police department to ensure that the information you found on the internet or from the local real estate agents is accurate.   This means the neighbor...
Read more

4 Steps to Maintain the Value of your Home

Image
Do you want to know how to maintain the value of your house? It’s a long-term process that demands commitment and regularity. You can’t give your home a deep clean once and not tend to its maintenance for months. It needs to happen every day or every week. Here are some easy steps to maintaining the look and structural integrity of your house. Repainting Paint peeling off or walls covered with stains and dirty handprints is the biggest turnoff for home buyers. A fresh coat of paint can do wonders! It makes your house look new and several years younger. It also conceals any minor foundation damages that don’t need to be repaired urgently while enhancing the sophistication  of your interiors and exteriors. Start with walls that are exposed to the elements the most because their paint wears off soonest. Curb Repairs The landscaping of your house front affects the curb appeal. A study by Michigan State University  revealed that investing in the curb appeal can enhance the property...
Read more

Critical Things to Check Before Buying a House

Image
Are you about to buy a house in Fayetteville, NC ? Congratulations, that's a huge milestone! However, buying a house is a lifetime investment, and you should never rush the process . Buying the first house you like without a detailed home inspection might be a waste of your money—and you obviously don't want to regret buying a house in the future! Here are some critical things you must check in a house before signing the deal. Check if the Appliances Work Properly New-looking appliances in a house aren’t always functional. Some sellers purchase home appliances to attract customers during an open house, but those don't always work properly. Therefore, we recommend checking the microwave, dishwasher, fridge, and more to ensure that these are working efficiently. Test the Outlets Another critical thing you must check before buying a house is electric outlets. Many home sellers don't bother getting unused outlets fixed before selling a home. However, you need functional out...
Read more